Elizabeth Warren urges SEC to halt record SpaceX IPO

According to a letter sent by Senator Elizabeth Warren to SEC Chair Paul Atkins, the planned June 12 listing raises concerns that require the regulator to take additional steps before allowing the offering to proceed.

Warren wrote that the size of the IPO alone would normally justify close scrutiny, but argued that several other factors make a delay necessary to protect investors and preserve market integrity. [...]

In her letter, Warren asked the SEC to examine whether index funds and other financial firms participating in the IPO are adequately safeguarding investors. She also called for greater transparency around the company’s valuation and requested clearer disclosure of risks tied to SpaceX’s ownership and governance structure.

Describing those concerns, Warren argued that public investors would be committing billions of dollars while having a limited ability to influence company leadership. The senator pointed to a combination of supervoting shares, mandatory arbitration provisions, shareholder proposal restrictions, and Texas corporate law as mechanisms that concentrate control among Elon Musk and other insiders.

Warren also urged SpaceX to eliminate its mandatory arbitration requirement.

by crypto.news

Trump Regulator Proposes New Rules on What’s Allowed on Prediction Markets

Trump regulators are proposing an expansive new set of rules on how they will govern the booming prediction markets, with parameters that will continue to allow most sports-related bets while trying to avoid inviting obvious manipulation.

The Commodity Futures Trading Commission is seeking the ability to block prediction wagers it finds aren’t in the public interest or that seem highly susceptible to manipulation, such as in cases where one person could have outsize impact on the result. The regulator proposed the new rules on Wednesday, confirming an earlier report in The Wall Street Journal.

The rules would likely limit certain types of sports-related trading such as bets on player injuries and so-called first-pitch gambling, like the type that ensnared an all-star Major League Baseball pitcher. Virtually all bets on war, terrorism or assassinations would also likely be prohibited on the basis that they aren’t in the public interest.

by WSJ

JPMorgan, Barclays, Fifth Third defeat lawsuit over missed 'red flags' at Tricolor

JPMorgan Chase (JPM.N), opens new tab, Barclays (BARC.L), opens new tab and Fifth Third (FITB.O), opens new tab won the dismissal of a lawsuit by investors who said the banks missed "giant red flags" at the now-bankrupt subprime auto lender Tricolor while fraudulently marketing its debt.

U.S. District Judge ​Jed Rakoff in Manhattan threw out the case on Wednesday, and said he ​will explain his reasoning in due course.

Holders of more than $270 million in ⁠Tricolor asset-backed notes sold between April 2022 and June 2025 accused the banks of "sticking their ​heads in the sand" while financing and securitizing Tricolor's auto loans, on top of being major ​Tricolor lenders, and enabling the company's "Ponzi-like fraud."

by Reuters

Peirce Out: Remarks at the U.S. Chamber of Commerce Capital Markets Summit

Thank you for indulging the meandering reminiscences of a soon-to-be former regulator. I am sad to be leaving a place that has allowed me to engage in the important work of regulating the finest capital markets in the world alongside fellow Commissioners and a wonderful staff who are committed to doing that task well. Yet I am delighted to be leaving a seat that should not be occupied by the same person for too many years. Ours is a government grounded in timeless principles, not fleeting personalities. The SEC will benefit from energetic new voices with fresh ideas about how to protect our precious and powerful capital markets. Happy 250th anniversary to the nation I have been so honored to serve.

by SEC Speeches